7 September 20263 min read
Denmark taxes company profit at 22% and dividends at up to 42%. Bulgaria charges 10% and 5%. Here is the full 2026 maths, the exit-tax rules, and what actually has to move.
Denmark runs one of the cleanest company registries in Europe and one of the heaviest personal tax systems. For a founder taking money out of an ApS, the corporate rate is only half the story.
| Item | Denmark (ApS) | Bulgaria (EOOD) |
|---|---|---|
| Corporate income tax | 22% | 10% |
| Dividend tax (owner) | 27% up to DKK 67,500, then 42% | 5% final |
| Share capital | DKK 20,000 | BGN 2 (about EUR 1) |
| VAT (standard) | 25% | 20% |
| Formation time | 1 to 3 days | About 5 business days |
Denmark ApS. 22% corporate tax leaves EUR 117,000. Distribute it all and the bulk falls in the 42% dividend bracket, so roughly EUR 48,000 of dividend tax. Net in hand: about EUR 69,000, an effective rate near 54%.
Bulgaria EOOD. 10% corporate tax leaves EUR 135,000. A 5% dividend tax takes EUR 6,750. Net in hand: about EUR 128,250, an effective rate of 14.5%.
The gap on this single year is close to EUR 59,000. Run the numbers on your own figures with our tax calculator.
Leaving yourself in Denmark. If you stay tax resident in Denmark, Danish rules on controlled companies and on place of effective management can pull the Bulgarian profit back into the Danish net. The company must genuinely be run from Bulgaria: decisions taken there, a real registered office, local accounting, and contracts signed by the Bulgarian entity.
Ignoring the exit tax. Denmark applies a departure tax on shares when you cease to be resident. If you already own an ApS with retained value, you may owe tax on the unrealised gain when you leave. Speak to a Danish adviser before restructuring; it is usually cheaper to start the Bulgarian company fresh than to migrate a loaded ApS.
Assuming the ApS must close. It often should not. Many founders keep the Danish company for legacy Danish clients and route new international work through the EOOD.
Formation fees start from EUR 399, and ongoing accounting typically runs EUR 80 to EUR 250 a month depending on transaction volume and VAT status. See the full breakdown in our accounting services guide and the yearly view in annual costs.
If you sell services to Danish or other EU businesses, reverse charge applies and you invoice without VAT once you hold a valid Bulgarian VAT number. Registration is mandatory above the domestic threshold and voluntary below it; the details are in the VAT registration guide.
You can own one, but do not expect Bulgarian tax rates on the profits. Danish residence plus Danish management usually means Denmark taxes the company. The saving only materialises when management and, in most cases, your own residence move.
Yes. The treaty allocates taxing rights and prevents the same income being taxed twice, but it does not override Danish rules on effective management or the departure tax on shares.
The Bulgarian company itself takes about five business days once documents are signed. See the formation timeline and the document list.
No. Everything we handle runs in English, including filings and bank onboarding.
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